Following the state news agency, the Saudi Gazette is reporting that gold demand in the kingdom is up 24 percent in 2017.
The Saudi Arabian Monetary Authority, or SAMA, in collaboration with the investment banking arms of some of the region’s leading banks, has been engaging in a strategy to increase the domestic gold price reserves over the last few years you can see the 24 carat gold rate.
This is mainly to hedge against fluctuations in international prices and prevent domestic devaluation.
The volume of the government’s silver purchases is 3,000 tons of refined silver annually.
More than half of the silver used in the kingdom is used in the food industry and medical devices.
The government has banned imports of gold products due to their added cost and foreign exchange losses, and particularly against the U.S. dollar.
The Riyadh gold market is one of the largest in the Middle East. According to Al-Sharq al-Awsat, the Oman gold market is the second-largest in the world and trades $6.5 million worth of gold products per day. The total gold market is about $3 billion.
Government regulation was put in place last year to stem speculative market activity and raise prices by limiting the supply of gold on the Riyadh gold market check-out this 18k gold value.
The deputy governor of the Riyadh Monetary Authority, the main regulator of the Riyadh gold market, told local media last year that Riyadh’s gold market was under-regulated and not sufficiently controlled, due to what he described as rampant illegal trading and hoarding of gold in the region.
He said the Saudi government was preparing to impose an effective monopoly on the market.
The Saudi government introduced tax-free storage for investors and the SAMA has imposed a set of measures aimed at easing the regulation of the market by providing incentives to individuals and commercial entities to trade on the Riyadh gold market.
Saudi Arabia is the world’s largest oil producer and exporter, and is expected to achieve a seven-year peak of annual gross domestic product growth in 2017, according to the World Bank’s Country Focus report on Saudi Arabia.
The oil minister says the country could become a net exporter of energy in as soon as three years. The petrodollar is a ponzi scheme by a gang of plunderers hell bent on exploiting the impoverished countries of the third world to service their debt.
Saudi Arabia has been leading the charge to finance the funding of Islamic State and Al Qaeda through crooked means. “We are today supporting their Islamic State oil sales to pay salaries and funding operations,” Saudi energy minister Khalid al-Falih told the Wall Street Journal on April 5th.
The tax-free storage on gold and silver is becoming all the rage among the political and monetary elites for this and other reasons.
Within Saudi Arabia, gold ownership is restricted to the upper class and even then, the amounts bought in legal tenders can only be 3.5 tons or 10 percent of the total population.
The silver market, on the other hand, is experiencing similar conditions as the Saudi current account balance is under pressure due to the low oil prices, and other factors check the silver price.